Posted by Randy on September 12, 2002 at 10:21:58:
Thanks for your advice, I’ve contacted my lawyer and is in the process of filing ch 7.
Is reorganization the same as bankruptcy?
Please help…I’m about to be forclosed on - Posted by Randy
Posted by Randy on September 09, 2002 at 14:18:18:
Please help…
Hi all, any advice will help greatly.
I have a rental house that is worth about $80k and the payoff is $48k. I’m facing forclosure and the house is going to sheriff sale in one week. I called the banks to see if they would allow me to satified my back payments, which is about $1800. They said NO, and want to be paid off.
I’ve been reading these posts for a while and know there is a solution for all this and keep my property with all that equity in it. My credit is horrible and I don’t have any cash.
What is the best way to do this?
Have a family member buy my house for loan value and pay him for the service?
Call a hard money lender to loan it to me?
Can I deed the house to my family member and have them take out a loan?
I’m just not sure what to do…
Please help
NONE OF THE ABOVE - Posted by Scott
Posted by Scott on September 10, 2002 at 02:08:51:
There are three ways to stop the foreclosure this close to the sell date.
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Bring the loan current. The reason they don’t want you to bring the loan current or say you can’t is because they are greedy pigs. You have lots of equity! Place your property in a Title Holding Land Trust and sell some of your equity to an investor for bringing your loan current. This is my favorite way to save folks from foreclosure. You should talk to an attorney in your state. I don’t think they can refuse a full payoff or full reinstatement amount. You have some rights to keep your house, rental or not.
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Pay off the loan (either by selling it or with cash). You can use the same method as I mentioned above except your investor would refinance the property into his/her name and name you a co-beneficiary in the Land Trust. You would then share the equity and some future growth in the property.
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File for reorganization. Yes this is a chapter 13 bankruptcy. But, it sounds like at this point filing for reorganization will improve your credit.
What happens is all your mortgage arrearages and all your secured and unsecured debt will be wrapped up into just one much lower repayment plan. This plan will protect you from losing you property. One of the most exiting things about a reorganization is that if you make all (and I repeat all), your payments on time for just 12 months you can apply for refinancing with a lender and refinance your way out of bankruptcy.
How do I know of what I speak. I am a lender and this is the business I am in. I search for folks in trouble, send them to my attorney, help them with their credit and bills for 12 to 18 months and WALLA, I have a new client to loan money too. Everyone wins.
Find a really good bankruptcy attorney. In most states you can simply pay a filing fee of about $185. Any additional attorney fees may and offen will be included in your repayment plan.
Don’t let bankruptcy scare you. At least find out if this is a viable option for you.
Where are you located?
Re: Please help…I’m about to be forclosed on - Posted by James Hansen
Posted by James Hansen on September 09, 2002 at 21:28:47:
I do feel for you, but the realty is…You will lose the house unless your relatives can find the money NOW to pay your debt.
If they can’t, you need to e-mail me two days before they foreclose and I will make you an offer on it.
Good Luck and God Bless
Jim Hansen
Re: Please help…I’m about to be forclosed on - Posted by Sean W. (NOLA)
Posted by Sean W. (NOLA) on September 09, 2002 at 20:31:37:
Randy,
Am I correct in assuming that you are in LA. too?
If so,the below info. may help you out in a making
a “QUICK” decision!
copied from:
http://www.2-stop-foreclosure.com/states/louisiana.htm
Use the following foreclosure process to develop a definite plan of action with well-timed, well-informed steps, so you can stop the foreclosure process and save your home!
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: No
In contrast to the laws of most of the states, which are based on the English common-law system, Louisiana laws are based on the civil law system used throughout most of Europe and much of the world. Under Louisiana’s system of laws, judicial foreclosure is the rule and deed of trust or power of sale type sales are not permitted (though Roman law itself would have allowed it).
Two Methods of Judicial Foreclosure Louisiana’s two foreclosure methods are (1) ordinary process and (2) executory process. Ordinary process operates as an ordinary lawsuit in Louisiana.
Executory Process
This is an accelerated procedure of a summary nature by which the lender uses a mortgage that includes an “authentic act that imparts a confession of judgment.” In practice this means the mortgage is signed before a notary and two witnesses. The borrower declares and acknowledges the obligations under the mortgage. Later, when the lender wants to foreclose, the lender files a suit in court, and attaches the original note and a certified copy of the mortgage. The court can then enter an order for the issuance of executory process.
In the past, executory process skipped citation, contradictory hearings and judgments. The problem with such procedures in the past has been a constitutional one. The U.S. Supreme Court, in the famous case of Fuentes V Shevin 1407 U.S. 67 (1972), held that the defendant in any lawsuit must be given notice of the suit and an opportunity to be heard in court. Louisiana’s current executory process procedures barely comply with these requirements. Once executory process issues, the borrower is served with a demand for payments that are due and unpaid on the loan. The borrower has three days to come up with the money. If the borrower doesn’t pay, the court will issue a writ of seizure and sale, armed with which, the sheriff will seize the real estate. The borrower gets a notice of seizure. The property is then advertised once a week for 30 days. The sheriff will then sell the property at auction to pay down or pay off the loan. Executory process is harsh and exacting. Executory process would allow a lender to seize possession of the property prior to reselling it at a foreclosure sale.
Ordinary Process In ordinary process the lender files a lawsuit to foreclose the mortgage. The borrower is served as a regular defendant in the lawsuit and the procedures for an ordinary lawsuit are followed. If the borrower loses, the court will enter judgment in favor of the lender. After that, a writ of fieri facias will be issued directing the property to be sold to pay off the loan.
Deficiency Judgments The lender must obtain a deficiency judgment by an ordinary lawsuit, either in conjunction with executory process or as a separate suit. A deficiency cannot be obtained by executory process alone. Executory process will allow seizure and sale of the property, but not a personal judgment.
Redemption
Louisiana does not recognize a right of redemption.
Re: Please help…I’m about to be forclosed on - Posted by M Lee
Posted by M Lee on September 09, 2002 at 15:47:38:
Go to Search And try to do a search about stalling Foreclosures, etc…
Option 1
I have heard of Filing for Bankruptcy as a way to stall a Foreclosure.
Option 2
I think I would try to find a very knowledgeable investor, and try to do an Equity Split, see If he will buy, stall foreclosure, and put it back on the market Retail, and when it does sale, split the profits with him…
Good Luck
Re: Please help…I’m about to be forclosed on - Posted by michaela-ATL
Posted by michaela-ATL on September 09, 2002 at 15:26:43:
it would have helped, if you had posted a week or 2 earlier, because, even if you deeded it now to a relative, they wouldn’t be able to obtain a normal loan in 1 week.
so, the options i see, would be to get a hard money lender involved, but be aware, that it’ll cost you:
65% of 80k is 52k, which would leave you about 2.2k after the late fees. you’d have to pay points (around 5%) and closing (around 1k), so you’d have to come out of pocket.
the other solution would be to sell to a wholesaler, but don’t expect to walk with a lot of money.
good luck
michaela
Re: Please help…I’m about to be forclosed on - Posted by Lou(TN)
Posted by Lou(TN) on September 09, 2002 at 14:51:42:
Why do you want to keep the rental if it is not making you money? I would cut my loses and try to sell to a wholesaler or else your credit is going to get a whole lot worse.
just my opinion
lou
Re: Please help…I’m about to be forclosed on - Posted by Randy
Posted by Randy on September 09, 2002 at 22:52:59:
Thank You very much for this web site. I’m so glad you responded to my post.
Thank you again.
Re: Please help…I’m about to be forclosed on - Posted by Randy
Posted by Randy on September 09, 2002 at 22:55:54:
Thanks for the advice. I’ve talked to my lawyer today and he said the forclosure can be stopped by bankruptcy also. I’ve got to meet him tomorrow to discuss this in further details. Thanks for your time in you post.
Re: Please help…I’m about to be forclosed on - Posted by Randy
Posted by Randy on September 09, 2002 at 22:58:40:
That is so true, I didn’t realize that. Thanks for your time in advising me.
Again, Thank You.
Re: Please help…I’m about to be forclosed on - Posted by Randy
Posted by Randy on September 09, 2002 at 23:06:54:
I appreciate your opinion very much. I’m at a point where I have no money and no credit because of bad real estate decisions I’ve made in the past. Because of all the positive and creative RE techniques I’ve learn from this site, there as got to be a better way than to just cut my losses.
All I want to do is get my equity out of that house. I’ve been studying creative RE and reading this web site for some time now and need that money to get a fresh new start in RE. Never, will I ever let tenants ruin my life again.
Thank you for your advice
Re: Please help…I’m about to be forclosed on - Posted by Gerald-DC
Posted by Gerald-DC on September 10, 2002 at 03:16:45:
Seems to me that if you make up the back payments and any other related fees the bank can’t go through with the foreclousure.
Another option that may work is to transfer the property into a landtrust and have the trustee file for bankruptcy. The bankruptcy may buy you some time, and since the landtrust is filing it, your name may not be associated with the bankruptcy.
If you want to consider doing such a thing, you MUST run this by your attorney asap because you do not have much time.
Best wishes for your successful outcome.
Re: Please help…I’m about to be forclosed on - Posted by Scott L. Moyes
Posted by Scott L. Moyes on September 12, 2002 at 01:34:40:
I see this all the time in my practice. Get a good attorney, file for reorganization and save your home, your credit and your equity. It’s amazes me with all the so-called Creative RE investors on this site no one knows how to use a reorganization to save foreclosure properties.
Equity Sharing won’t work.
Wraps won’t work.
Hard Money won’t work.
Etc., Etc., Etc.
Re: Please help…I’m about to be forclosed on - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on September 10, 2002 at 24:01:03:
I think you are missing the point. You are going to lose it all in a week, UNLESS you do something. Cut your losses if it is this bad. Find someone who will take it at a giant discount and move on. Don’t expect to get all your equity, be reasonable and think about your predicament for a second.